NZ shares finish week 1% lower

The NZ sharemarket finished the week almost 1% weaker after a volatile Mercury NZ led another fall today.

Friday, March 26th 2021, 6:46PM

by BusinessDesk

The S&P/NZX 50 Index fell 39.23 points, or 0.3%, to 12,348.83. Within the index, 24 stocks rose, 17 rose and nine were unchanged. Turnover was $198 million.

Electricity company Mercury NZ has had dramatic price swings this week, trading as high as $6.64 yesterday before falling to $6.20 today.

Across the week the utility gained 3.2% as investors continue to digest its purchase of Tilt Renewables NZ assets.

Another electricity firm, Meridian Energy, lost 5.5% this week after dropping another 1% to $5.105 today. The stock briefly traded above $9 only months ago.

Dairy processor Synlait Milk bounced 2.9% to $3.55, but still finished the week down 15%.

The stock had rallied after being sold on an earnings guidance downgrade at the start of the month but gave up that recovery during this week.

Chorus shares fell 2.5% to $7.30 after it submitted an Initial Asset Value model to the regulator that would limit revenue to between $715m and $755m a year until 2024.

“While the preliminary estimated revenue range broadly aligns with Chorus’ forecast fibre revenues for this initial period, it leaves no room for unintended consequences,” said chief financial officer David Collins.

Sky TV shares climbed 1.1% to 17.7 cents. Today, it said plans to sell two of three buildings at its Mount Wellington base in Auckland, saying they’re not being used.

Chief executive Sophie Moloney said the sale would free up capital to be spent elsewhere. Last year, the pay-TV company valued its properties at $42.2 million.

Hallenstein Glasson Holdings shares dropped 1.6% to $7.38. The retailer said sales in the first seven weeks of the winter season are already 17.8% higher than last year.

However, managing director Mary Devine said the comparison period was heavily impacted by covid-19.

The kiwi dollar was trading near a four-month low at 69.71 US cents at 5pm in Wellington, down from 69.76 cents yesterday.

The trade-weighted index was at 73.29 at 5pm, from 73.30 yesterday. The kiwi traded at 91.58 Australian cents from 91.75 cents, 76.18 yen from 75.98 yen, 59.21 euro cents from 59.00 cents, 50.67 British pence from 50.92 pence, and 4.5575 Chinese yuan from 4.5530 yuan.

Tags: Market Close